The ICB Shopping Centre site is going up for en bloc sale, with a land size of 15,548 square ft available. The site’s owners wish to sell the mixed retail and residential Freehold development site for $65-70 million.
Located in Yio Chu Kang Road, the mixed development site will appeal to small to mid-sized developers.
There are currently 13 retail units with a further 6 residential units on the site with apartment units between 1,324 and 1,550 sq ft each.
The development site has stood for thirty years and its plot ratio can be increased to 3.0 offering greater space for units on the site. It was agreed by the owners to place the site up for collective sale last week.
Strata AMC, the agency who is currently working with the owners over the collective sale believes it’s very much possible for the current asking price to be achieved.
However, there is an agreed-upon five-day cooling period for buyers over the sale and when this is over, it will then be placed out to tender. The agency also said it’s possible to get $1,390 to $1,500 PSF for each unit. The gross floor area can be increased from 25,123 GFA to 46,643.
Collective or en bloc sales have become a popular trend within recent times and ICB Shopping Centre does look set to attract buyers locally and globally. It’s a fairly decent market and developers are looking optimistic over the site and its potential for the future.
As said, the ICB Shopping Centre sits on a freehold with additional land and it’s only a mere 1km from the Serangoon MRT station and the NEX shopping Mall. It is also close to several restaurants and even a small retail shopping facility too. It’s nicely placed and it’s a good mix for residential and commercial use.
The Executive Director for Strata AMC, Anne Loh said, ‘since the shopping centre is located essentially on a main road, it’s a more than convenient location. Also, Upper Hougang and Serangoon precincts were up and coming with growth potential being the highest yet.
The site covers a large area and there is a real developer’s potential here, especially for medical centres as currently, the local area doesn’t have a lot of medical facilities close by.’
ZACD Group Executive Director, Nicholas Mak, said, ‘this looks set to be a wonderful project and small developers will benefit highly from this project too.
In recent years, many developers have been priced out of the en bloc sales market simply because they are smaller companies and cannot compete with some of the larger developers.
Few years ago, developers have been squeezed out the market and high prices are not helping matters.’ Mr Mak also said, ‘he believed the hype over en bloc sales would have slowed considerably since the development charge rates increase (in August) and yet it hasn’t which is remarkable.’
With the DC (development charge) rates increasing it essentially means developers who wish to expand a new development will have higher rates to pay.
Mr Mak also said, ‘while there has been a rise in costs for developers, this hasn’t deterred them buying up en block properties.
This is truly a boom that’s trending and its popularity continues nonetheless. Big developers might not look to ICB shopping centre as their next big project and yet it’s a fantastic and very viable option for smaller developers.’
If the ICB shopping centre does go on sale and a deal is complete, this will be another commercial or mixed-use property to do so within the year.
Goh & Goh Building (which is also a mixed-use property) was bought up by BBR Holdings for a massive $101.5 million. The property in Upper Bukit Timah Road proved to be a fascinating prospect for developers.
In July, a foreign developer took interest in the Citimac plot which they then purchased for a massive $430.1 million. Close to Tai Seng MRT station, the developer has certainly gotten a bargain.
What is more, only a few weeks ago, there was a six storey, Elite Building located near Aljunied MRT station and that sold for $52 million. The Tabernacle Church and Missions Limited purchased it. These three sites have already shown there is real potential for en bloc sales especially those located so nicely to rail lines.